Music icons Patti Smith, Carlos Santana, and Steven Tyler all share something in common—and it’s not just rock and roll. They’re baby boomers, the longest-living genera✨t🌌ion in the history of the United States.

According to records from the U.S. 澳洲幸运5官方开奖结果体彩网:Census Bureau, baby boomers—those born after the end of World War II, or from 1946 through 1964—number 73 million. Also notable: 2031 marks the year that the youngest boomers, those born in 1964, will turn 67 and become eligible to receive 澳洲幸运5官方开奖结果体彩网:Social Security benefits.

In addition to concerns about the general aging of the U.S. population (over-65s are projected to make up 20% of the U.S. population by 2029), economists have expressed concern about the 澳洲幸运5官方开奖结果体彩网:trickle-down economic effects as boomers reach their later years.

In this article, wꦚe take a look at the impact on꧟ the economy and the labor force that baby boomers are expected to have as they continue to reach retirement age.

The Lucky Ones

Boomers have proven to be an astoundingly productive cohort. Part of t🐽heir success comes down to luck. Economically speaking, they were born at the right time.

After enjoying childhoods during the high-growth and economically stable 澳洲幸运5官方开奖结果体彩网:decades following World War II, they rode the crest of relative prosperity into middle age with just a handful of economic blips, like the 1979 energy crisis and the early 澳洲幸运5官方开奖结果体彩网:1980s recession. 

Consider the height of the Clinton era. During the 1990s, labor force participation soared to an all-time high. That kid who worked two paper routes in 1965 would have been well-positioned to cash in on the 澳洲幸运5官方开奖结果体彩网:dotcom boom of the 1990s at the peak of their earning yea꧋rs.

Whatౠ will happen as more than 250,000 Americans celebrate their 67th birthdays each month? As🍌 more boomers head toward retirement, the impact on the labor force and consumer spending is showing profound effects.

There Were Bad Times

The devastating Great Recession that struck in 2008 has been widely blamed for a low workforce participation rate in the ensuing years.

Another cause of lower labor numbers can be chalked up to boomers w🦂ho are now retiring in🌊 significant numbers, though many were forced to work extra years to compensate for retirement investment🐟s losses in the 2008–09 markeꦦt crash.

Big Spenders on Their Children

Retirees tend to spend less. But one area where this generation is spending more? Their adult children. A substantial percentage of parents are providing some financial support for these children, with 澳洲幸运5官方开奖结果体彩网:student loan assistance being a significant area of financial burden.

For many boomers, that financial assistance goes beyond student loans to housing. In February 2020, 47% of young adults aged 18 to 29 resided with one or both of their parents. As of July 2020, that number had surged to 52%—surpassing the previous peak last seen during the 澳洲幸运5官方开奖结果体彩网:Great Depression. In 2022, 56% of adults aged 18 to 24 lived with their parents.

Post-Boomer Bust?

Between bleak economic predictions, the 澳洲幸运5官方开奖结果体彩网:subprime mortgage debacle, and widespread post-recession losses of retirement savings, no wonder some members of this generation are reluctaꦚnt to retire♕. Even now, the generation that coined the phrase “live to work” is living up to its reputation.

This workplace longevity may prove a problem for younger workers who have struggled to find well-paid, stable work during levels of 澳洲幸运5官方开奖结果体彩网:high unemployment. The upside? Retirement for this older cohort is as inevitable as the boomerang effect tha💛t will eventually create job availability.

Ultimately, some boomers take the live-to-work ethos to an extreme. That, or they need to continue working to build needed retirement savings. A 2013 Gallup poll about the consumer and workplace behaviors of baby boomers, posed this question: “At what age do you plan to retire?” For 10% of respondents, the answer was a succinct “Never.”

A 2023 Gallup survey found that just 39% of workers aged 50 to 64 felt that they had enough retirement savings for their retirement years. Many believed they'd need to work part-time after leaving the workforce.

The Bottom Line

While baby boomers are working longer, their inevitable retirement will ᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚhave widespread effects on the American economy.

Expect a big impact on consumer spending, as retirees not only produce less but al🌄so consume and spend less. In addition though, the mass retirements of boo🦩mers could have a positive boomerang effect on jobs for younger employees, freeing up positions for those who may be struggling to find work or to expand their employment opportunities.